The Rob Berger Show

RBS 253: Bonds vs. Bond Funds: Does Holding to Maturity Actually Protect You?

The Rob Berger Show

Show Notes

Are individual bonds safer than bond funds? After my last video on cash versus bonds, a lot of you pushed back with the same argument: with an individual bond or a bond ladder you can hold to maturity and get your money back, and a bond fund can't do that. In this video I put that idea to the test with real numbers. I start with the one thing we have to understand first, the difference between a bond's maturity and its duration. Duration is what tells us how much a bond or a bond fund moves ...

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